For real estate investors wondering about the options for funding their venture there is one option that many may not have considered – government grants for real estate investing. Together the federal and state governments have released billions of dollars worth of grants to invest in real estate.
Why is all this free money available for businesses and non-profits to put into real estate? Well, providing housing is a major function of the government and offering grants to invest in real estate is a way for them to outsource part of the job and spread the workload.
So exactly what things are able to be funded through grants and can you get a grant for investing in real estate? There are programs for acquiring properties, buying land, building housing, rehabbing and converting properties for residential use, amongst others.
On top of the grants to invest in real estate there are also low-cost and forgivable loans available. A forgivable loan is a loan that essentially converts into a grant and need not be paid back. Many of these real estate grants and loans can be accessed for investing as long as they meet the requirements that the government sets down.
There are some grants to invest in real estate available to for-profit investors but also some that are intended solely for non-profit organizations. However, there are ways that the smart investor can also open up the possibility to access these government grants and loans too.
For example, if a grant is aimed at helping seniors through a non-profit, a savvy investor might approach them to partner on a project so that the investor offers the housing expertise and the non-profit can provide specific expertise about the needs of the seniors. They may also bundle in some of their regular non-profit services. This may open the project up to receiving both non-profit and for-profit grants to invest in real estate.
Thanks to Jillian Coleman Wheeler for her input with this article.
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